tag:blogger.com,1999:blog-53650247147617316362024-02-08T12:39:07.829-08:00Natural Resource EconDr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.comBlogger325125tag:blogger.com,1999:blog-5365024714761731636.post-69405640047230767792017-06-15T06:45:00.000-07:002017-06-15T06:45:45.377-07:00Local environmental issueIf you have been paying attention to the news, you haven't escaped <a href="http://www.newbernsj.com/news/20170607/toxin-taints-cape-fear-river-drinking-water">the recent story about an emerging contaminant being discovered in the Cape Fear River and in our drinking water</a>.<br />
<br />
The contaminant is known as GenX, a chemical produced by a company named Chemours and used in making Teflon for non-stick pans. Teflon is also used in nail polish, windshield wiper blades, carpet protection and clothing like Gore-Tex. Teflon used to be produced with a chemical called C8, but <a href="http://www.cnn.com/2015/09/15/opinions/lerner-chemical-c8-dupont-plant/index.html">C8 was discovered to be toxic</a>. GenX is the replacement product, and we don't know much about it yet. As a result, there are no standards (allowable levels) for this chemical. This is why GenX is classified by the EPA as an emerging contaminant. We don't know enough about it yet to have regulations in place. <br />
<br />
More reading <a href="http://www.wwaytv3.com/2017/06/14/state-agencies-investigating-genx-dumping-in-cape-fear-river/">here</a>, and <a href="http://www.wwaytv3.com/2017/06/13/cfpua-discovered-genx-in-cape-fear-river-in-november/">here</a>. Note that the Cape Fear Public Utility Authority has known about this for many months.<br />
<br />
Listen to an interview with Dr. Larry Cahoon of UNCW <a href="http://wunc.org/post/toxins-found-cape-fear-water-supply#stream/0">here</a>.<br />
<br />
<a href="http://www.wwaytv3.com/wp-content/uploads/2017/06/CFPUA-Water-Sources-Map_June2017.pdf">Here is a map</a> of the area where CFPUA distributes public water from the Cape Fear (notice that our campus is right in the middle of it).<br />
<br />
How would we analyze this issue using the tools from our course?<br />
Could we do a cost-benefit analysis of some sort?<br />
Perhaps a valuation study? Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com6tag:blogger.com,1999:blog-5365024714761731636.post-51758140119783574132017-06-07T08:44:00.002-07:002017-06-07T11:39:35.918-07:00How can we get landowners to preserve environmentally valuable lands? We can create zoning laws that forbid certain uses of land.<br />
Another option is to pay them to preserve.<br />
<br />
<i>Text below is an updated re-post</i>:<br />
<br />
<br />
<div style="text-align: justify;">
One of the things we learn in natural resource
economics is to look at problems in terms of their costs and benefits. By
asking questions about who gains and who loses (and when, and how) we can
gain an important perspective on the <i>causes </i>of natural resource problems.<br />
<br />
</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
When given access to private benefits from
natural resources, people tend to take actions that promote their own
well-being. This access comes in the form of our daily contact with open-access
and common property resources as well as extraction and habitat conversion on
private lands. We all pollute in numerous ways to
promote our own benefits (comfort, convenience, standard of living), because it’s
cheap and easy to do so. As individuals, the costs we pay for access to the
world’s resources are low because they are shared by everyone.<br />
<br />
</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
How do we change the calculus? <span style="mso-spacerun: yes;"> </span>Let’s try everything and see what works. Education,
an appeal to “do the right thing”, and legal mandates on acceptable use, all
serve important roles. <span style="mso-spacerun: yes;"> </span>Monetary
incentives that affect individual costs and benefits also can be an
effective tool in many situations. These incentives come in several forms, most of
which we discuss in this course.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
One incentive-based method that seems to be
gaining favor in developing nations is PES. PES stands for <b>Payments for Environmental
Services.</b> The basic idea of PES is to create incentives for conservation of
natural resources by transferring dollars from those that benefit from
conservation to those who bear the (opportunity) costs of conservation.<br />
<br />
</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
In some PES arrangements government and/or NGOs
pay landowners to engage in activities to conserve or restore biodiversity.
This can be as simple as letting a cow pasture revert back to its natural state
or setting aside lands that would otherwise be used for another purpose.<br />
<br />
</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
Costa Rica is a leader in PES and a great example
of the power of this approach. From the 1940s through the 1980s, Costa Rica had
one of the highest rates of deforestation in the world.<span style="mso-spacerun: yes;"> </span>As recently as 1987, forest cover in Costa
Rica was as low as 21 percent of national territory, down from over 85 percent
in the early 1900s. The principle causes of deforestation were incentives for
the conversion of land to agricultural uses, such as preferable tax treatment
for lands used to cultivate crops and support cattle, and heavier tax burdens
for “unproductive” lands (i.e. lands not used to produce market benefits). People
responded to the incentives they faced. Given the costs and benefits of land
use it made sense to convert lands to other uses.<br />
<br />
</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
In 1996, leaders in Costa Rica decided to try to
reverse this path of biodiversity loss. The main idea was simple: reward
landowners for conservation rather than rewarding them for land conversion. <a href="http://www.teebweb.org/wp-content/uploads/2013/01/Enabling-the-legal-framework-for-PES-Costa-Rica.pdf">A
series of forest laws</a> were enacted, which gave favorable tax treatment to conservation
and reforestation, banned the export of primary forest products, mandated that
banks provide low-interest loans for reforestation, created a system of
national parks and forest reserves and, in 1997, enacted a PES system.<span style="mso-spacerun: yes;"> </span><br />
<br />
</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
Costa Rica’s PES system involves direct payments
to landowners in exchange for the adoption of land uses and management
techniques that provide one or more of four services:<span style="mso-spacerun: yes;"> </span>Greenhouse gas mitigation, provision of water
or other hydrological services, conservation of biodiversity or provision of
scenic beauty for recreation and tourism. Payments are provided by government. Revenues
from a fuel tax (ala Pigou) are a primary source of funding. Other sources of
funds include <a href="http://www.worldbank.org/en/news/press-release/2013/09/10/creditos-por-reduccion-de-carbono">sale
of carbon credits</a> to other nations and international loans. Between 1997
and 2005, a half-million hectares of forest lands were enrolled in the program.
Forest cover is now over 60 percent and rising. </div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
<br />
While this progress is exemplary, the Costa Rican
Minister of the Environment recently stated that it is getting increasingly
difficult to conserve. Without <a href="http://www.ecosystemmarketplace.com/pages/dynamic/article.page.php?page_id=10166">a
system of international carbon markets</a>, such as that which might take place
through large scale adoption of <a href="https://www.forestcarbonpartnership.org/what-redd">REDD andREDD+ schemes</a>, he suggested that the Costa Rican path of conservation will
soon be unsustainable. </div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<div class="MsoNormal" style="text-align: justify;">
<br />
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Read more about Costa Rica’s
PES experience here at <a href="https://www.iied.org/payments-for-ecosystem-services-costa-rica-s-recipe"><span style="font-family: "times new roman" , "serif";">IIED</span></a>.</span></div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<div class="MsoNormal" style="text-align: justify;">
<br />
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Read more about PES <span style="font-family: "times new roman" , "serif";">her<span style="font-family: "times new roman" , "serif";">e </span></span>at <i style="mso-bidi-font-style: normal;"><a href="http://www.ecologyandsociety.org/vol15/iss2/art4/">Ecology and Society</a></i>.
</span></div>
Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com6tag:blogger.com,1999:blog-5365024714761731636.post-48943237195586559532017-06-03T05:11:00.000-07:002017-06-03T05:11:41.985-07:00The economic value of the natural environmentA few weeks ago the Dean of the Cameron School of Business at UNCW, Dr. Robert Burrus, asked me to write a blog post for the Greater Wilmington Business Journal related to the economy and the environment.<br />
<br />
<a href="http://www.wilmingtonbiz.com/insights/robert__burrus/the_economic_value_of_the_natural_environment/1672">Here is what I came up with</a>.<br />
<br />
Please let me know what you think. Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com5tag:blogger.com,1999:blog-5365024714761731636.post-84333566208660203382017-05-30T07:04:00.001-07:002017-05-30T07:04:21.812-07:00Value and Valuation from Conservation Strategy FundBelow are links to a great series of videos from <a href="http://conservation-strategy.org/">Conservation Strategy Fund</a> covering this week's topics:<br />
<br />
<a href="https://www.youtube.com/watch?v=q8AZHtF2f50&feature=youtu.be">Valuation of Ecosystem Services: Classes of Values</a><br />
<br />
<a href="https://www.youtube.com/watch?v=0CHIs9dLvxA&list=PLBfu1mD9hk66oUljAURGn9PCXbUnBHWaP">Valuation of Ecosystem Services: Intro to Valuation</a><br />
<br />
<a href="https://www.youtube.com/watch?v=Mol1yT7tczY">Cost-Benefit Discounting</a> <br />
<br />
CSF also has short videos on each of the valuation methods. <br />
<br />
<a href="https://www.youtube.com/playlist?list=PLBfu1mD9hk66oUljAURGn9PCXbUnBHWaP">Here is the full playlist at YouTube</a> Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com1tag:blogger.com,1999:blog-5365024714761731636.post-37873407429209016402017-05-30T06:52:00.000-07:002017-05-30T06:52:02.270-07:00Fees for plastic bags vs. bansStarting on June 1, grocery stores in <a href="http://www.nationnews.com/nationnews/news/97123/-plastic-bag">my home-away-from-home will charge a 15-cent fee for the use of plastic grocery bags</a>. This initiative (basically a Pigouvian tax on an activity that generates a negative externality) has been in the works for many years and after a lot of <a href="https://www.barbadostoday.bb/2017/05/23/when-a-solution-becomes-a-problem/">discussion </a>and <a href="https://www.barbadostoday.bb/2017/02/04/plastic-bag-initiative-hits-a-snag/">push-back</a> appears to be finally happening.<br />
<br />
This particular externality has many potential solutions. A tax or fee can be imposed on the use of bags, consumers can receive a subsidy for bringing their own bags or for recycling bags, or plastic bags can be banned outright. Each of these alternatives has pros and cons. <br />
<br />
Many areas have banned plastic bags. Examples include the state of California, the Outer Banks of NC, Austin, TX and Seattle, WA. Some places also have fees for paper bags. <br />
<br />
Are bans on plastic bags beneficial? Maybe. Like many things that appear simple, it is a complicated issue and there are no easy answers. <br />
<br />
<a href="https://www.scientificamerican.com/article/do-plastic-bag-bans-work/">Here is a short article at Scientific American</a> on the effectiveness of bag bans.<br />
<br />
<a href="http://greenliving.lovetoknow.com/Why_Should_We_Not_Ban_Plastic_Bags">Here is a longer article at GreenLiving</a> noting some of the important drawbacks and unintended consequences associated with bag bans.<br />
<br />
<a href="https://www.biocycle.net/2016/08/15/ubiquitous-plastic-bag/">Here is a summary of research from the University of New Hampshire</a> on the costs and benefits of different approaches. Importantly, the research shows that in some cases, bans might not be as good for the environment as initially thought. When lightweight plastic bags are banned, people tend to substitute thicker bags, which are worse. Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com6tag:blogger.com,1999:blog-5365024714761731636.post-77537216046378492392017-05-26T07:13:00.004-07:002017-05-26T07:13:58.052-07:00A delayed welcome - Summer 2017Greetings class. Apologies for the delay in posting.<br />
<br />
Now that we have several days of study under our belts, I'm curious to know what you have learned about natural resource economics. You don't have to answer all of these questions, but here are some things to consider.<br />
<br />
For economics majors: How is the study of natural resources different than the study of market goods and services? How is the economics of natural resource use similar to the use of other goods and services?<br />
<br />
For environmental studies majors: Has your perspective on economics changed over the past week?<br />
What were your initial perceptions of economics and what are your perceptions now? <br />
<br />
For all students: What does economics bring to the table in terms of understanding natural resource use and developing policy options to promote economic and environmental sustainability? Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com3tag:blogger.com,1999:blog-5365024714761731636.post-40469980502324797922016-06-16T05:57:00.004-07:002016-06-16T05:57:50.666-07:00Parting shotsAs our course wraps up, I'm curious to know which topics you enjoyed the most and the least. Which topics you'd would have like to spend more time on (or less)? What are your overall impression of the course and the field of study?Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com9tag:blogger.com,1999:blog-5365024714761731636.post-47178344752735626642016-06-15T11:02:00.003-07:002016-06-15T11:02:59.584-07:00Collaboration between competitors to reduce bycatch<a href="https://www.sciencedaily.com/releases/2016/05/160523160437.htm">Here is a cool story</a> from ScienceDaily on the benefits of networking between commercial tuna fishers.<br />
<br />
Read the full article <a href="http://www.pnas.org/content/113/23/6466.full">here from <i>Proceedings of the National Academy of Sciences</i></a>. The authors are a multidisciplinary team from the University of Hawaii and James Cook University. Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com8tag:blogger.com,1999:blog-5365024714761731636.post-24554250384401577352016-06-15T10:52:00.002-07:002016-06-15T10:52:22.411-07:00The value of street trees<a href="http://www.eurekalert.org/pub_releases/2016-06/ufs--ct061416.php">Here is a story</a> about a the ecosystem service values of "street trees" in California.<br />
<a href="http://www.sciencedirect.com/science/article/pii/S1618866715301400">Here is the link to the full article</a>, published in the journal <i>Urban Forestry and Urban Greening</i>, which includes discussion of management implications. Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com8tag:blogger.com,1999:blog-5365024714761731636.post-34372810416390293602016-06-09T06:05:00.000-07:002016-06-09T06:05:11.228-07:00Costa Rica PES <i>Re-post</i>:<br />
<br />
<div style="text-align: justify;">
One of the things we learn in natural resource
economics is to look at problems in terms of their costs and benefits. By
asking questions about who gains and who loses (and when, and how) we can
gain an important perspective on the <i>causes </i>of natural resource problems. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
When given access to private benefits from
natural resources, people tend to take actions that promote their own
well-being. This access comes in the form of our daily contact with open-access
and common property resources as well as extraction and habitat conversion on
private lands. We all pollute in numerous ways to
promote our own benefits (comfort, convenience, standard of living), because it’s
cheap and easy to do so. As individuals, the costs we pay for access to the
world’s resources are low because they are shared by everyone. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
How do we change the calculus? <span style="mso-spacerun: yes;"> </span>Let’s try everything and see what works. Education,
an appeal to “do the right thing”, and legal mandates on acceptable use, all
serve important roles. <span style="mso-spacerun: yes;"> </span>Monetary
incentives that affect individual costs and benefits also can be an
effective tool in many situations. These incentives come in several forms, most of
which we discuss in this course.<br />
</div>
<div style="text-align: justify;">
One incentive-based method that seems to be
gaining favor in developing nations is PES. PES stands for <b>Payments for Environmental
Services.</b> The basic idea of PES is to create incentives for conservation of
natural resources by transferring dollars from those that benefit from
conservation to those who bear the (opportunity) costs of conservation. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
In some PES arrangements government and/or NGOs
pay landowners to engage in activities to conserve or restore biodiversity.
This can be as simple as letting a cow pasture revert back to its natural state
or setting aside lands that would otherwise be used for another purpose. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Costa Rica is a leader in PES and a great example
of the power of this approach. From the 1940s through the 1980s, Costa Rica had
one of the highest rates of deforestation in the world.<span style="mso-spacerun: yes;"> </span>As recently as 1987, forest cover in Costa
Rica was as low as 21 percent of national territory, down from over 85 percent
in the early 1900s. The principle causes of deforestation were incentives for
the conversion of land to agricultural uses, such as preferable tax treatment
for lands used to cultivate crops and support cattle, and heavier tax burdens
for “unproductive” lands (i.e. lands not used to produce market benefits). People
responded to the incentives they faced. Given the costs and benefits of land
use it made sense to convert lands to other uses. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
In 1996, leaders in Costa Rica decided to try to
reverse this path of biodiversity loss. The main idea was simple: reward
landowners for conservation rather than rewarding them for land conversion. <a href="http://www.teebweb.org/wp-content/uploads/2013/01/Enabling-the-legal-framework-for-PES-Costa-Rica.pdf">A
series of forest laws</a> were enacted, which gave favorable tax treatment to conservation
and reforestation, banned the export of primary forest products, mandated that
banks provide low-interest loans for reforestation, created a system of
national parks and forest reserves and, in 1997, enacted a PES system.<span style="mso-spacerun: yes;"> </span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Costa Rica’s PES system involves direct payments
to landowners in exchange for the adoption of land uses and management
techniques that provide one or more of four services:<span style="mso-spacerun: yes;"> </span>Greenhouse gas mitigation, provision of water
or other hydrological services, conservation of biodiversity or provision of
scenic beauty for recreation and tourism. Payments are provided by government. Revenues
from a fuel tax (ala Pigou) are a primary source of funding. Other sources of
funds include <a href="http://www.worldbank.org/en/news/press-release/2013/09/10/creditos-por-reduccion-de-carbono">sale
of carbon credits</a> to other nations and international loans. Between 1997
and 2005, a half-million hectares of forest lands were enrolled in the program.
Forest cover is now over 60 percent and rising. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
While this progress is exemplary, the Costa Rican
Minister of the Environment recently stated that it is getting increasingly
difficult to conserve. Without <a href="http://www.ecosystemmarketplace.com/pages/dynamic/article.page.php?page_id=10166">a
system of international carbon markets</a>, such as that which might take place
through large scale adoption of <a href="http://www.un-redd.org/AboutREDD/tabid/102614/Default.aspx">REDD and
REDD+ schemes</a>, he suggested that the Costa Rican path of conservation will
soon be unsustainable. </div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Read more about Costa Rica’s
PES experience here at <a href="http://www.paxnatura.org/CostaRicanPESProgram.htm">PaxNatura</a>.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "times new roman" , "serif"; font-size: 12.0pt; line-height: 115%;">Read more about PES <a href="http://www.unep.org/pdf/PaymentsForEcosystemServices_en.pdf">here at UNEP</a>
and at <i style="mso-bidi-font-style: normal;"><a href="http://www.ecologyandsociety.org/vol15/iss2/art4/">Ecology and Society</a></i>.
</span></div>
Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com10tag:blogger.com,1999:blog-5365024714761731636.post-37230246988971545632016-06-08T09:08:00.001-07:002016-06-08T09:08:14.803-07:00Few things are as simple as they seem. It's hard to be a well-informed voter and citizen. You have to read, and you have to read a lot. You cannot read only one source and you cannot limit your reading to sources that agree with what you think you know. Read both sides. Read like crazy. <br />
<br />
<a href="https://en.wikipedia.org/wiki/Clean_Power_Plan">The US Clean Power Plan</a> is a great example of why its hard to be informed. <br />
<br />
Will it <a href="https://nextgenamerica.org/blog/the-clean-power-plan-will-create-jobs-and-cut-electricity-bills/">create jobs and decrease energy prices</a> or will it <a href="http://www.heritage.org/research/reports/2015/07/the-many-problems-of-the-epas-clean-power-plan-and-climate-regulations-a-primer">destroy jobs and create higher energy prices</a>? <br />
<br />
<a href="http://journals.plos.org/plosone/article?id=info%3Adoi%2F10.1371%2Fjournal.pone.0156308">Here is an academic article on the topic</a> that suggests positive net benefits (really large positive net benefits), despite harm to employment and industries in some locations. <br />
<br />
A larger topic here is the impact of environmental regulations on economic growth. One side of the political spectrum will routinely claim that regulations designed to protect the environment will inhibit economic growth. <a href="https://www.epa.gov/clean-air-act-overview/clean-air-act-and-economy">But there is mounting evidence that environmental regulations can promote economic growth through improved health and productivity</a>. Another topic is the impact of economic growth on the environment. One side of the political spectrum often argues for slower economic growth to benefit the environment. But, there are <a href="http://hubpages.com/education/Does-economic-development-improve-environmental-quality">a lot of reasons and evidence supporting the idea that economic growth can lead to substantial environmental improvements</a>. <br />
<br />
It's enough to make your head explode. But the truth is that these topics are messy! What to do? <br />
<br />
When faced with controversial topics I tend to rely on academic research published in reputable peer-reviewed journals. I read a lot of newspapers and online popular press material, but when push comes to shove, I want to see the data, the science and the analysis. When these topics come up in social settings, a common response of mine is "I really don't know enough about that topic to have an opinion". And that's OK, because controversial topics are controversial for a reason. Most actions will have both costs and benefits and unintended consequences. Things are rarely as simple as they initially seem. Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com8tag:blogger.com,1999:blog-5365024714761731636.post-68659803547543952572016-06-08T07:59:00.005-07:002016-06-08T09:13:35.538-07:00There is plenty of landfill space but ... Trash and recycling are interesting topics to really dive into, because a lot of what we think we know with certainty may be a case of "it depends". For example, recent evidence is showing that recycling is not always good for the environment. The blog post before this one has more readings on this topic. <br />
<br />
<a href="https://www.washingtonpost.com/local/dc-politics/american-recycling-is-stalling-and-the-big-blue-bin-is-one-reason-why/2015/06/20/914735e4-1610-11e5-9ddc-e3353542100c_story.html">Here is another article from the Washington Post on contamination from single-stream bins</a>.<br />
<br />
The main takeaway seems to be that some recycling is definitely very favorable both environmentally and economically (e.g. recycling aluminum cans prevents destructive mining of virgin bauxite and helps us avoid the polluting generated in processing the ore) while the benefits of recycling other materials may depend the material and your location . Glass recycling in particular looks much less appealing on both environmental and economic grounds than other products.<br />
<br />
On the consumer demand side, <a href="http://newkirkcenter.uci.edu/files/2014/02/Catlin-Wang-JCP-2013.pdf">the fact that we can now recycle products with very little effort may cause us to think less about reducing waste at the source</a>. That is, if we know that we can simply drop a "recyclable" plastic water bottle into a recycling bin, we may worry less about our consumption of single-use beverage containers and other material. This is simple economics: when the cost of doing something decreases, we tend to do more of it. <br />
<br />
We also recently learned that <a href="http://www.businessinsider.com/ap-study-twice-as-much-trash-put-in-landfills-than-estimated-2015-9">we are disposing of much more municipal solid waste that originally estimated by the US EPA</a>. However, we are not running out of landfill space any time soon. The problem with sending MSW to landfills is not capacity, but no one really wants to live near one. <a href="http://www.eurekalert.org/pub_releases/2016-05/oup-lna052316.php">Here is a link to a summary of a recent study</a> suggesting that living within 5 km of a landfill could cause serious health effects.<br />
<br />Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com7tag:blogger.com,1999:blog-5365024714761731636.post-35732221070978708312016-06-06T07:19:00.003-07:002016-06-06T07:19:55.608-07:00Market forces and recycling<a href="http://www.cbsnews.com/news/why-recycling-economics-are-in-the-trash-bin/">Here is an interesting article from CBS News</a> on the impact of low gas prices on recycling. It directly relates to the 'big picture' connections between extraction and recycling. Given that petroleum extraction and use imposes negative costs on society and recycling can be viewed as providing positive external benefits, is there a potential policy solution here? <br />
<br />
<a href="http://www.wsj.com/articles/high-costs-put-cracks-in-glass-recycling-programs-1429695003">Here is a story from the Wall Street Journal</a> on an unintended negative consequence of single-stream recycling (and an argument for deposit-refund systems for glass bottles). <br />
<br />
<a href="http://www.nytimes.com/2015/10/04/opinion/sunday/the-reign-of-recycling.html?_r=0">Here is a thought-provoking article from the New York Times</a> on the subject of recycling, which challenges much of the conventional wisdom that we take for granted. Read it all the way to the end for a policy suggestion ala Pigou. Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com8tag:blogger.com,1999:blog-5365024714761731636.post-84543454221021505492016-05-31T09:37:00.000-07:002016-05-31T09:37:04.376-07:00ValuationThe topic for this week is <i>non-market valuation</i>.<br />
<br />
Valuation means estimating what something is worth (to people, usually in dollars).<br />
<br />
Non-market means that the goods or services that we are attempting to value are not traded in markets. That is, these are things of value, but we do not have prices to serve as signals of what they are worth.<br />
<br />
There are a lot of misconceptions about the non-market valuation of natural resources of environmental goods and services. The first and perhaps biggest misconception is that economists want to go around estimating the monetary value of things for no particular reason. This is far from true. We only attempt to understand the value of environmental goods and services when there is a reason to do so. For example, we might wish to understand the the tradeoffs that society faces for a development decision or a conservation project. Understanding the opportunity costs of lost environmental quality helps decision makers understand the worth of what stands to be lost. Understanding the benefits of conservation (again, in dollar terms) helps us see if conservation initiatives are "worth it". In short, understanding the value of things can be useful for informing policy.<br />
<br />
Another misconception is that if and when the monetary value a natural resource is estimated, this somehow "cheapens" the resource. Again, I do not think this is true at all. Indeed, the default value of many environmental resources is zero, because many goods and services provided by the environment can be obtained for free. Valuation helps remind society that just because something is free, this does not mean it is not valuable. <br />
<br />
Finally, its important to consider that the process of non-market valuation is simply formalizing something that we do (implicitly) every day.
For example, when you decide to drive your car instead of walking, you
are implicitly stating that you value your own convenience more than you
value the pollution that you cause by driving. On an aggregate level,
when we vote for policies or politicians that favor other spending
opportunities over spending on the environment, we are implicitly
stating that we value those other things more than we value the
environment. We even implicitly value human lives, including our
own. When we choose to spend less money on road repair or highway
safety, we are implicitly valuing human life. We could spend more money
and have fewer people die, but we choose not to because it's "too expensive". When someone chooses to
look at their phone when they are driving, they are revealing that they
value that bit of information over their own safety and the safety of
others. Our actions (individually and collectively speaking) reveal what
we value. <br />
The process of economic valuation makes the tradeoffs easier to
understand and compare by expressing them in dollar terms. <br />
<br />
Here are links to some good sources: <br />
<br />
<a href="http://webspace.pugetsound.edu/facultypages/kburnett/readings/shogren.pdf">Why Economics Matters for Endangered Species Protection</a> (Shogren et al., 1998)<br />
<br />
<a href="http://www.rff.org/Documents/08_Tropics_Conference/Tropics_Conference_Papers/Tropics_Conference_Naidoo_Valuation_in_Tropics.pdf">The Role of Economic Valuation in the Conservation of Tropical Nature</a> (Naidoo, 2008)<br />
<br />
<a href="http://www.defenders.org/resources/publications/programs_and_policy/science_and_economics/conservation_economics/conservation_pays_how_protecting_endangered_species_makes_good_business_sense.pdf">Conservation Pays</a> (Yuskavitch, 2007, Defenders of Wildlife)<br />
<br />
<a href="http://siteresources.worldbank.org/INTENVMAT/Resources/3011340-1238620444756/5980735-1238620476358/7Marineconservation.pdf">Marine Conservation: How Economic Valuation of Ecosystem Services Can Hel</a>p (Environment Matters, 2008)<br />
<br />
<a href="http://www.globalrestorationnetwork.org/uploads/files/LiteratureAttachments/59_can-environmental-economic-valuation-techniques-aid-ecological-economics-and-wildlife-conservation.pdf">Can Environmental Economic Valuation Techniques Aid Ecological Economics and Wildlife Conservation?</a> (Loomis, 2000, Wildlife Society Bulletin)<br />
<br />
Of additional interest:<br />
<br />
<a href="http://www.cites.org/eng/prog/economics/CITES-draft6-final.pdf">Economic Incentives and Wildlife Conservation</a> (Bulte et al., 2003)<br />
<br />
Tons of references and links here: <a href="http://www.wri.org/project/valuation-caribbean-reefs/references#coastal">Economic Valuation References WRI</a><br />
<br />
Information on coral reef valuation can be found <a href="http://www.icriforum.org/groups/our-committees/economic-valuation">here </a>and <a href="http://coralreef.noaa.gov/Library/Publications/valuesummaryreport.pdf">here</a> and <a href="http://environment.bm/coral-reef-economic-valuation/">here</a> and <a href="https://www.sciencedaily.com/releases/2009/10/091016093913.htm">here</a>. <br />
<br />
Valuation and the endangered species act <a href="http://www.umich.edu/%7Eesupdate/library/97.01-02/shogren.html">here.</a><br />
<br />
More on the economics and value of endangered species <a href="http://www.rff.org/blog/2010/economics-endangered-species">here</a> and <a href="http://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1115&context=icwdm_usdanwrc">here</a>. <br />
<br />
<br />
This
is a tiny fraction of what's out there. What are your thoughts on
valuation?
I'd especially like to see if students from different backgrounds look
at valuation differently. When you post a reply, let us know your
primary field of
study. Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com12tag:blogger.com,1999:blog-5365024714761731636.post-6681139159829913512016-05-30T06:20:00.001-07:002016-05-30T06:20:21.185-07:00Memorial Day Today is Memorial Day. I hope you enjoy time with family and friends. Take time to not only consider, but celebrate our collective and individual freedom. Freedom to pursue happy and productive lives, to express our thoughts, to worship as we choose and to move about our lands unimpeded. Celebrate these amazing things that you have been gifted by the ultimate heroes, the more than 1.1 million men and women that gave their lives so that we could. Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com0tag:blogger.com,1999:blog-5365024714761731636.post-51840842380692337262016-05-22T07:53:00.003-07:002016-05-22T07:55:40.321-07:00Externalities<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: small;">Externalities are a type of <a href="http://www.economicshelp.org/micro-economic-essays/marketfailure/">market failure</a> that occurs when the costs or benefits of a good sold in a market are not
entirely paid or received by the market participants. When this happens, the market <i>fails </i>to produce the best outcome for society. That is, the market <i>fails</i> to be <i>efficient</i> in the sense that <a href="http://thismatter.com/economics/total-surplus.htm">total economic surplus</a> is not maximized. </span></span><br />
<br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: small;">Negative
externalities occur when someone other than the buyer or seller of a good incurs a
cost when that good is produced or consumed. Many forms of pollution can
be classified as generating negative externalities. If the pollution is unregulated (i.e. there is no government intervention into the market), then the market that produces the pollution is inefficient. </span></span><br />
<br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: small;">When visualizing negative externalities from pollution, students often think of a factory emitting harmful substances from a smokestack, or an industrial agricultural facility creating water pollution from pesticide runoff. That is, we tend to conceptualize pollution externalities as the result of production (the supply side of the market), and place blame on "big corporations". </span></span><br />
<br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: small;">But we must keep in mind that as consumers we are largely responsible for pollution impacts, because if we didn't demand those goods and services, they would not be produced. <a href="http://www.eurekalert.org/pub_releases/2016-02/nuos-chh022416.php">Here is a link to a story at EurekAlert regarding pollution from consumption</a>. The main takeaway is that <i>consumers </i>are mostly responsible for pollution, albeit indirectly. Which country's citizens have the biggest impact via consumption? Which products that you consume every day generate the most pollution? </span></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: small;"><br /></span></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: small;">When we speak of "external costs", what types of costs are we talking about? The first thing that comes to mind for me is loss of human health. <a href="http://www.eurekalert.org/pub_releases/2016-02/uobc-paq020816.php">Here is a story about the health effects of air pollution</a>. The numbers are staggering. </span></span><br />
<br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: small;">I'm often asked to comment on the idea that environmental regulations make the economy less productive. My reaction is typically that it's exactly the opposite. There is a vast amount of evidence suggesting that reducing air and water pollution can make the economy <u>more</u> productive, not less. </span></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: small;"><br /></span></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: small;"><a href="http://www.theatlantic.com/health/archive/2012/09/how-the-clean-air-act-has-saved-22-trillion-in-health-care-costs/262071/">Here is an article at The Atlantic </a>outline the healthcare costs savings of the Clean Air Act. </span></span><br />
<br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: small;"><a href="http://www.usnews.com/opinion/economic-intelligence/2015/06/08/epa-clean-water-rules-benefits-outweigh-its-costs">Here is a good description of the benefits of clean water</a> from David Brodwin at US News. </span></span><br />
<br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: small;">Here is <a href="https://people.hofstra.edu/geotrans/eng/ch8en/conc8en/table_airpollutionexternalities.html">a brief outline of negative externalities associated with air pollution from transportation</a> from Hofstra University. </span></span><br />
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: small;"><br /></span></span>
<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="font-size: small;">Here is <a href="http://www.imf.org/external/pubs/ft/fandd/basics/external.htm">some good background reading on negative externalities and public goods</a> from the IMF. </span></span>Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com5tag:blogger.com,1999:blog-5365024714761731636.post-25795955604239090092016-05-16T09:53:00.002-07:002016-05-16T09:53:57.781-07:00What are we going to study in natural resource economics? <div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<b><span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">What are we going to study in natural
resource economics? </span></span></b></div>
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<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> </span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Students new to economics or new to environmental studies may be unsure about how these topics come together. </span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><br />
Generally speaking, economists try to solve problems using a combination of
theory, empirical analysis (data, statistics, math), and intuition. <span style="mso-spacerun: yes;"></span>For example, macro economists try to address issues
such as how to keep an economy growing without significant inflation.<span style="mso-spacerun: yes;"> </span>Micro economists might try to find the best
way to maximize profit for a particular firm or industry. Natural resource
economists try to solve problems associated with scarce natural resources. <br />
<br />
Some examples from my work include: <span style="mso-spacerun: yes;"> </span></span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span></span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><a href="http://www.jstor.org/stable/3147039?seq=1#page_scan_tab_contents">How can we manage fisheries in a way that balances the competing needs of commercial and recreational fishers and maintains a biologically sustainable stock?</a><span style="mso-spacerun: yes;"> </span> </span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> <span style="mso-spacerun: yes;"> </span></span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<a href="https://etudescaribeennes.revues.org/5251"><span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;">Is pollution bad for an economy? Do dirty beaches prevent tourists from returning?</span></span></span></a></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span></span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"><a href="http://www.sciencedirect.com/science/article/pii/S0301479713001072">Tradeoffs between development and conservation... How much are scuba divers willing to pay for healthy coral reefs and marine turtles? </a> </span></span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> </span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><a href="http://link.springer.com/article/10.1023/A:1011121503549">How to best manage wildlife populations? What hunting regulations would maximize the net gains to society from white tailed deer populations? </a> <span style="mso-spacerun: yes;"> </span></span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span></span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><a href="http://www.sciencedirect.com/science/article/pii/S0921800910003897"><span style="mso-spacerun: yes;">If we continue to use marine resources in unsustainable ways, will we lose potentially lifesaving medicines? </span></a><span style="mso-spacerun: yes;">
</span></span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> </span></span></div>
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<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">
Obviously, these are complex issues that require interdisciplinary effort. One
of the things that I really love about what I do is that I work side-by-side
with biologists, policy makers and resource users to address these problems. </span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><br /></span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">It should also be obvious is that these are potentially contentious issues. It is
easy to get caught up in the emotion that surrounds any debate about
environmental issues. Please remember that an economists job is to
provide objective analysis (i.e. without personal opinion or bias). In short, our job is to search for the truth, or as close to it as we can get. </span></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><span style="mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><br />Below are links to an overview of environmental economics and two excellent essays that provide a nice perspective on the
economic view of the environment. The second essay covers non-market valuation, which we will
cover in </span>detail later in the summer. It makes a good read now however, as
it sets the stage for much of what we're covering at the beginning of the class
(e.g. the economic view of value).</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"> </span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><a href="http://studyingeconomics.ac.uk/module-options/environmental-economics/">What is environmental economics?</a> (</span><span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;">The Economics Network at the University of Bristol) </span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;">
<br />
</div>
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><a href="http://www.deu.edu.tr/userweb/sedef.akgungor/dosyalar/Economistsenvironment.pdf">How
do Economists Really Think About the Environment</a> (Fullerton and Stavins,
RFF, 1998)</span><br />
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"> </span><br />
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;"><a href="http://www.choicesmagazine.org/2005-3/nonmarket/2005-3-01.htm">Economic
Values without Prices</a> (Loomis, Choices, 2005)</span><br />
<br />
<span style="font-family: "Helvetica Neue",Arial,Helvetica,sans-serif;">What
are your thoughts on economics and the environment? At the beginning
of the course, do you see a role for economics in the environmental
policy debate? </span>Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com11tag:blogger.com,1999:blog-5365024714761731636.post-28187923987794559422016-05-11T07:00:00.001-07:002016-05-11T07:00:17.541-07:00Welcome UNCW Summer School Students! Hello! This blog is primarily used by students of Professor Schuhmann. Others may find it useful...<br />
The purpose of this blog is to provide a forum for extra discussion about topics related to natural resource economics. Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com0tag:blogger.com,1999:blog-5365024714761731636.post-7104583139461023782015-12-03T13:50:00.002-08:002015-12-03T13:50:18.019-08:00Thoughts on the course?What topics did you find most/least useful? <br />
Most/least interesting? <br />
What were your main takeaways from the course?<br />
Was resource economics what you expected?<br />
<br />
No need to answer all of these....Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com10tag:blogger.com,1999:blog-5365024714761731636.post-45897090659976179252015-11-09T09:05:00.002-08:002015-11-09T09:05:26.577-08:00Free electricity? Check out <a href="http://www.nytimes.com/2015/11/09/business/energy-environment/a-texas-utility-offers-a-nighttime-special-free-electricity.html?&moduleDetail=section-news-1&action=click&contentCollection=U.S.&region=Footer&module=MoreInSection&version=WhatsNext&contentID=WhatsNext&pgtype=article">this interesting story from the NY Times</a>. Lots of economics in there. Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com5tag:blogger.com,1999:blog-5365024714761731636.post-59234795224000823622015-10-29T11:33:00.002-07:002015-10-30T11:54:26.038-07:00Bag-and-tag This week we move into a discussion of mineral extraction and a related topic: trash and recycling.<br />
<br />
Below are links to some examples of formal bag/tag (pay-per-throw) systems in the US.<br />
<br />
<a href="http://www.dover.nh.gov/government/city-operations/community-services/waste-recycling/bag-and-tag/index.html">Dover, NH, </a><br />
<a href="http://www.charlescountymd.gov/pw/environmental/trash-disposal-and-tag-bag-program">Charles County, MD </a><br />
<a href="http://www.mt-pleasant.org/departments/division_of_public_works/refuse_and_recycling.asp">Mount Pleasant, MI</a><br />
<a href="http://sunnyvale.ca.gov/Departments/EnvironmentalServices/Garbage,RecyclingandWasteReduction/GarbageServices/SingleFamilyandChoiceCollect/ExtraGarbageTags.aspx">Sunnyvale, CA</a><br />
<a href="http://houstontx.gov/solidwaste/garbage-collection-tips">Houston, TX</a><br />
<a href="http://www.duluthga.net/solid_waste_and_recycling.php">Duluth, GA</a><br />
<a href="http://www.recycletompkins.org/garbage/trash-tags">Tompkins County, NY</a><br />
<a href="http://www.cityofmalden.org/waste">Malden, MA</a> <br />
<a href="http://www.grafton-ma.gov/Public_Documents/GraftonMA_DPW/sanitation&recycling/PAYT%20FAQ">Grafton, MA</a><br />
<a href="http://www.shrewsbury-ma.gov/department/division.php?fDD=15-256">Shrewsbury, MA</a> <br />
<br />
This is just a few. <br />
<br />
<a href="http://www.golocalworcester.com/news/worcesters-pay-as-you-throw-trash-removal-saves-city-10-20m">Here is a link to details on the success of a bag/tag program in Worcester, MA.</a><br />
<br />
<a href="http://wastezero.com/about-us/press-releases/new-pay-to-throw-program-in-eliot,-maine,-cuts-solid-waste-by-more-than-half,-saves-$8,500-in-four-months.aspx">Success in Maine </a><br />
<br />
<a href="http://www.dem.ri.gov/programs/bpoladm/stratpp/payt/payt.htm">Variations on pay-per-throw in RI</a><br />
<br />
<br />
<b><i>Can anyone provide international examples of pay-per-throw systems?</i></b><br />
<br />
<a href="http://sustainability.ncsu.edu/changeyourstate/north-carolina-landfills/">Good reading on the topic of waste in NC</a> from NCSU<br />
<br />
The idea behind these systems is a fairly straightforward application of internalizing a negative externality: Impose Pigouvian taxes on things that cause
external damage and society will be better off, because raising marginal
costs creates an economic incentive for people to reduce quantity.<br />
<br />
<a href="http://greatergreaterwashington.org/post.cgi?id=5911">Here's a writer in Washington DC lamenting the lack of pay-per-throw trash disposal.</a><br />
<br />
A related issue: plastic grocery bags. <br />
<b><br /><i>What do you think about <a href="http://www.telegraph.co.uk/finance/personalfinance/tax/11746517/New-5p-carrier-bag-tax-comes-into-force-when-do-you-need-to-pay.html">this </a>approach versus <a href="http://magazine.good.is/articles/hawaii-just-became-first-state-nation-ban-plastic-bags">this </a>approach? </i></b>Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com6tag:blogger.com,1999:blog-5365024714761731636.post-29780991437245346052015-10-20T11:52:00.000-07:002015-10-20T11:52:31.437-07:00More valuation readings Here is a great website for additional reading on valuation: <br />
<a href="http://www.ecosystemvaluation.org/index.html">Ecosystem Valuation</a><br />
<br />
This article by john Loomis is also a good read for the "big picture": <br />
<a href="http://www.choicesmagazine.org/2005-3/nonmarket/2005-3-01.htm">Economic Values without Prices</a> (Loomis, <i>Choices</i>, 2005)<br />
<br />
Here is another good summary article from Robert Mendelsohn and Sheila Olmstead:<br />
<a href="https://environment.yale.edu/files/biblio/YaleFES-00000201.pdf">The Economic Valuation of Environmental Amenities and Disamenities</a> Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com3tag:blogger.com,1999:blog-5365024714761731636.post-45747103252684323822015-10-08T08:43:00.001-07:002015-10-08T08:49:01.357-07:00Settlement with BP to Resolve Civil Claims Over Deepwater Horizon Oil SpillThis came out on Monday, while most of us were engaged in watching the storm and ensuing flooding...<br />
<br />
<div class="speech-header">
<div class="node-title">
<b>Attorney General Loretta E. Lynch
Delivers Remarks at Press Conference Announcing Settlement with BP to
Resolve Civil Claims Over Deepwater Horizon Oil Spill </b></div>
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<span autocomplete="locality" class="locality">Washington</span>, <span autocomplete="region" class="state">DC</span></div>
<span autocomplete="country" class="country">United States</span></div>
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<span class="tilde">~</span>
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<span class="date-display-single" content="2015-10-05T00:00:00-04:00">Monday, October 5, 2015</span></div>
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<span class="date-display-single" content="2015-10-05T00:00:00-04:00">Read the full</span><i><a href="http://www.justice.gov/opa/speech/attorney-general-loretta-e-lynch-delivers-remarks-press-conference-announcing-settlement"> Remarks as prepared for delivery</a> </i></div>
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Here are some parts that pertain to non-market valuation: <i> </i></div>
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<i><br /></i></div>
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<i>... The Gulf was flooded with oil. And the Gulf coast way of life – a
uniquely American way of life – was hanging by a thread. Over the
course of nearly three months, the Gulf region was inundated with more
than three million barrels of oil. And by the time the torrent stopped,
it had inflicted unprecedented harm on the economy, the environment and
the population of the Gulf region. Ecosystems were disrupted,
businesses were shuttered and countless men and women lost their
livelihoods and their sense of security. </i></div>
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<i><br /></i></div>
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<i>... in December of 2010, the Department of Justice filed a lawsuit against
BP to hold the company accountable and to provide vital relief for the
people of the Gulf region. </i></div>
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<i><br /></i></div>
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<i>... we have secured a historic resolution of our pending claims against BP
totaling more than $20 billion – making it the largest settlement with a
single entity in American history. The resolution includes civil
claims under the Clean Water Act, for which BP has agreed to pay a $5.5
billion penalty – the largest civil penalty in the history of
environmental law. It includes natural resources damages claims under
the Oil Pollution Act, for which BP has agreed to pay $7.1 billion – on
top of the $1 billion it previously committed to pay for early
restoration work. And it includes economic damages claims, for which BP
has agreed to pay $4.9 billion to the five Gulf states and up to $1
billion to local governments.</i></div>
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<i>... In addition, BP’s payments for natural resources damages will help fund
Gulf restoration projects that will revitalize damaged habitats, such as
coastal wetlands and support the revival of wildlife populations,
including marine mammals, sea turtles, oysters and birds. </i></div>
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---</div>
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I hope you see the role of non-market valuation in natural resource damage assessment. BP caused damage and should pay a fine. Many goods and services that are not traded in markets were damaged, impaired or ruined. In order for the fine to be commensurate with the damages, we need to do the non-market valuation work. </div>
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<a href="http://www2.epa.gov/laws-regulations/summary-oil-pollution-act">The Oil Pollution Act</a> is an interesting piece of legislation. Enacted in the wake of<a href="http://www.evostc.state.ak.us/?FA=facts.QA"> the Exxon Valdez oil spill,</a> it combines command-and-control (e.g. mandating double-hulled tankers) with Pigouvian taxation. The Valdez spill <a href="http://www.oceaneconomics.org/nonmarket/pubpolicy.asp">had a big impact on the subject of non-market valuation</a>, especially as it pertains to the estimation of non-use values via the Contingent Valuation Method. </div>
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<br /></div>
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I was an undergrad at UNCW when Valdez happened in March of 1989. Like the 2010 BP spill, it was big news. You can see some of the images <a href="http://www.theatlantic.com/photo/2014/03/the-exxon-valdez-oil-spill-25-years-ago-today/100703/">here at the Atlantic</a>. 26 years later, <a href="http://response.restoration.noaa.gov/oil-and-chemical-spills/significant-incidents/exxon-valdez-oil-spill/prince-william-sound-recovered.html">while some of the natural resources in Prince William Sound have recovered</a>, <a href="http://www.huffingtonpost.com/2014/03/20/25-years-later-exxon-valdez-spill_n_4999628.html">many have not</a>. <i><br /></i></div>
</div>
</div>
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Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com7tag:blogger.com,1999:blog-5365024714761731636.post-86297183166553361962015-09-14T14:10:00.000-07:002015-09-14T14:10:45.967-07:00Costa Rica and PES <br />
<i>Re-post</i>:<br />
<br />
<div style="text-align: justify;">
One of the things we learn in natural resource
economics is to look at problems in terms of their costs and benefits. By
asking questions about who gains and who loses (and when, and how) we can
gain an important perspective on the <i>causes </i>of natural resource problems. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
When given access to private benefits from
natural resources, people tend to take actions that promote their own
well-being. This access comes in the form of our daily contact with open-access
and common property resources as well as extraction and habitat conversion on
private lands. We all pollute in numerous ways to
promote our own benefits (comfort, convenience, standard of living), because it’s
cheap and easy to do so. As individuals, the costs we pay for access to the
world’s resources are low because they are shared by everyone. </div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
How do we change the calculus? <span style="mso-spacerun: yes;"> </span>Let’s try everything and see what works. Education,
an appeal to “do the right thing”, and legal mandates on acceptable use, all
serve important roles. <span style="mso-spacerun: yes;"> </span>Monetary
incentives that affect individual costs and benefits also can be an
effective tool in many situations. These incentives come in several forms, most of
which we discuss in this course.<br />
</div>
<div style="text-align: justify;">
One incentive-based method that seems to be
gaining favor in developing nations is PES. PES stands for Payments for Environmental
Services. The basic idea of PES is to create incentives for conservation of
natural resources by transferring dollars from those that benefit from
conservation to those who bear the (opportunity) costs of conservation. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
In some PES arrangements government and/or NGOs
pay landowners to engage in activities to conserve or restore biodiversity.
This can be as simple as letting a cow pasture revert back to its natural state
or setting aside lands that would otherwise be used for another purpose. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Costa Rica is a leader in PES and a great example
of the power of this approach. From the 1940s through the 1980s, Costa Rica had
one of the highest rates of deforestation in the world.<span style="mso-spacerun: yes;"> </span>As recently as 1987, forest cover in Costa
Rica was as low as 21 percent of national territory, down from over 85 percent
in the early 1900s. The principle causes of deforestation were incentives for
the conversion of land to agricultural uses, such as preferable tax treatment
for lands used to cultivate crops and support cattle, and heavier tax burdens
for “unproductive” lands (i.e. lands not used to produce market benefits). People
responded to the incentives they faced. Given the costs and benefits of land
use it made sense to convert lands to other uses. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
In 1996, leaders in Costa Rica decided to try to
reverse this path of biodiversity loss. The main idea was simple: reward
landowners for conservation rather than rewarding them for land conversion. <a href="http://www.teebweb.org/wp-content/uploads/2013/01/Enabling-the-legal-framework-for-PES-Costa-Rica.pdf">A
series of forest laws</a> were enacted, which gave favorable tax treatment to conservation
and reforestation, banned the export of primary forest products, mandated that
banks provide low-interest loans for reforestation, created a system of
national parks and forest reserves and, in 1997, enacted a PES system.<span style="mso-spacerun: yes;"> </span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Costa Rica’s PES system involves direct payments
to landowners in exchange for the adoption of land uses and management
techniques that provide one or more of four services:<span style="mso-spacerun: yes;"> </span>Greenhouse gas mitigation, provision of water
or other hydrological services, conservation of biodiversity or provision of
scenic beauty for recreation and tourism. Payments are provided by government. Revenues
from a fuel tax (ala Pigou) are a primary source of funding. Other sources of
funds include <a href="http://www.worldbank.org/en/news/press-release/2013/09/10/creditos-por-reduccion-de-carbono">sale
of carbon credits</a> to other nations and international loans. Between 1997
and 2005, a half-million hectares of forest lands were enrolled in the program.
Forest cover is now over 60 percent and rising. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
While this progress is exemplary, the Costa Rican
Minister of the Environment recently stated that it is getting increasingly
difficult to conserve. Without <a href="http://www.ecosystemmarketplace.com/pages/dynamic/article.page.php?page_id=10166">a
system of international carbon markets</a>, such as that which might take place
through large scale adoption of <a href="http://www.un-redd.org/AboutREDD/tabid/102614/Default.aspx">REDD and
REDD+ schemes</a>, he suggested that the Costa Rican path of conservation will
soon be unsustainable. </div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Read more about Costa Rica’s
PES experience here at <a href="http://www.paxnatura.org/CostaRicanPESProgram.htm">PaxNatura</a>.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Read more about PES <a href="http://www.unep.org/pdf/PaymentsForEcosystemServices_en.pdf">here at UNEP</a>
and at <i style="mso-bidi-font-style: normal;"><a href="http://www.ecologyandsociety.org/vol15/iss2/art4/">Ecology and Society</a></i>.
</span></div>
Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com3tag:blogger.com,1999:blog-5365024714761731636.post-90198935338214806412015-09-11T10:49:00.003-07:002015-09-11T12:47:12.038-07:00Welcome CERMES, UWI students! <span style="font-family: Arial,Helvetica,sans-serif;"><span style="font-size: small;">Starting this week we will be joined by 15 masters students at the <a href="http://www.cavehill.uwi.edu/index.asp">University of the West Indies - Cave Hill</a>. These students are enrolled in the MSc in Natural Resource and Environmental Management program at <a href="http://www.cavehill.uwi.edu/cermes/home.aspx">The Centre for Resource Management and Environmental Studies</a> (CERMES), and hail from 9 different countries: Antigua and Barbuda, Barbados, Dominica, Grenada, Guyana, Italy, St. Lucia, St. Vincent and the Grenadines and Trinidad and Tobago. </span></span><br />
<span style="font-family: Arial,Helvetica,sans-serif;"><span style="font-size: small;"><br /></span></span>
<span style="font-family: Arial,Helvetica,sans-serif;"><span style="font-size: small;">The CERMES students will be with us until around Thanksgiving. Their course follows the same basic outline and topic coverage. </span></span><br />
<span style="font-family: Arial,Helvetica,sans-serif;"><span style="font-size: small;"><br /></span></span>
<span style="font-family: Arial,Helvetica,sans-serif;"><span style="font-size: small;">Welcome! </span></span>Dr. Peter Schuhmannhttp://www.blogger.com/profile/00515555784026939008noreply@blogger.com0